The gainful employment (GE) rule aims to hold career-focused training programs accountable for student outcomes. The rule includes an earnings threshold that requires programs to result in graduates' earnings being at least as high as earnings of a typical high school graduate in their state. The GE rule's focus on postcompletion earnings does not…

The Biden administration is developing regulations around gainful employment (GE) that would protect students from career-oriented college programs that don't adequately serve their students. A draft GE rule released earlier this year would require that graduates of certificate programs at public and nonprofit colleges and nearly all programs at…

The 90/10 rule dictates that no more than 90 percent of institutional revenue at a for-profit college or university (FPCU) can come from Title IV funds. The rule, originally an 85/15 ratio, was introduced in the 1992 amendments to the Higher Education Act and has been debated for 25 years. Proponents argue the rule raises institutional quality by…

For nearly half a century, the federal government has largely outsourced the determination of which colleges and universities are eligible to receive federal taxpayer money--in the form of student grants and loans--to member-based, geographically oriented accrediting agencies. This outsourcing of responsibility, however, has failed to protect…

In 1992, Congress banned schools participating in federal student aid programs from paying commissions, bonuses, or other financial incentives to individuals based on their success in enrolling students or securing their financial aid. The ban applies to all postsecondary schools, including private for-profit, public, and private nonprofit…

The nation's 4-year not-for-profit colleges and universities collectively held more than $400 billion in endowments in 2008. Some institutions' large endowments coupled with the high and growing cost of college have led to questions about institutions' use of endowments. This mandated report describes: (1) the size and change in value of…

Once comprised of local, sole-proprietor ownership, the nation's for-profit institutions now range from small, privately owned schools to publicly traded corporations. Enrollment in such colleges has grown far faster than in traditional higher-education institutions. Moreover, during the 2009-2010 school year, for-profit colleges received almost…

As reauthorization of the Higher Education Act is considered, two controversial issues influence the debate: (1) the escalating costs of higher education; and (2) differential regulation of institutions based on measures of their performance. In the current economy, financial aid should allow students to consider alternatives to four-year…

The growth of private higher education has come as a surprise to most governments, which have tried to catch up in their regulatory and funding policymaking. In China, Malaysia and South Africa they have given legal recognition to previously disallowed private higher education and this has helped to fuel its subsequent growth. Some governments…

In its 2001 performance and accountability report on the Department of Education, the General Accounting Office (GAO) identified challenges with student financial-aid programs, financial management, and other areas facing education. The information presented in this report is intended to help sustain congressional attention and a departmental…

Current and proposed standards for satisfactory academic progress for recipients of federally sponsored student financial aid under Higher Education Act Title IV are reviewed. The review covers the following standards, proposals, and guidelines: the Veterans Administration standard, a self-regulatory initiative and guidelines for colleges provided…

Factors contributing to the growing federal regulation of United States colleges and universities are explained, and regulation's impact in the areas of student aid, race relations, scientific research, environmental protection, and age discrimination are discussed. It is argued that a balance between institutional autonomy and accountability must…

Implications for colleges and universities of a proposed new audit guide for Office of Management and the Budget (OMB) Circular A-110 are considered. The Department of Health and Human Services (HHS) is considering issuance of an audit guide that will outline procedures to be followed to comply with the audit requirement in Circular A-110. With…

This semiannual report to Congress summarizes the activities of the Department of Education's Office of Inspector General (OIG) for the 6-month period ending September 30, 1997. The OIG gave Congressional testimony regarding the modernization of student-financial-assistance-information programs, the Loan Consolidation process, the Federal Direct…

This report reviews trends affecting rising costs and prices in higher education and proposes an action agenda for colleges, government at all levels, families and students, and other patrons. The recommendations emphasize shared responsibility to (1) strengthen institutional cost control; (2) improve market information and public accountability;…